~UPDATED: August 7, 2011~
S&P Chief Looks at ENTITLEMENT REFORM to Resolve Debt Downgrade!!!
David Beers, global head of sovereign and international public finance ratings at S&P, told “Fox News Sunday” that governments and Congresses come and go, but spending on entitlements persistently drags U.S. debt further into the red.
“The key thing is, yes, entitlement reform is important because entitlements are the biggest component of spending, and the part of spending where the cost pressures are greatest,” Beers said.
Beers said he faults both Congress and the Obama administration for “the difficulty of all sides in finding a consensus around fiscal policy choices,”
DNC Chair Debbie Wasserman Schultz stating that Obama and the Democrats OWN This economy back on June 15, 2011~Politico Interview
S&P has effectively downgraded the US’ AAA rating to AA+. I said this before the debt ceiling was passed that we would be downgraded, I am only shocked that Moody’s put the US on a simple downgrade warning.
S&P and Moody’s warned that if there was not at least $4 TRILLION in cuts, they would downgrade.
Republican House pushed for $4 TRILLION, in fact Paul Ryan’s bill back in March 2011 called for $6 TRILLION in cuts, but Progressive Democrats, AKA the Socialist Faction of the Democrat Party screamed and hollered; so, Obama backed down and demanded MORE tax increases, to the tune of $1.2 TRILLION after Boehner offered $800 billion in tax increase via closing corporate tax loopholes and other tax priviledges.
So, the Republican House negotiates $800 billion in increase tax revenue even though the far right was against it and Obama cannot control the far LEFT of HIS party?
Obama’s own words, “I did not think it was fair that there was a 4-to-1 spending cuts to revenue increases ratio, there should be more revenue increases.” Go to minute 23:
Clearly S&P and Moody’s has an issue with Obama’s SPENDING PROBLEM!
Debbie Wasserman Schultz (D), on June 15, 2011 said that the “We [democrats] own the economy. We own the beginning of the turnaround and we want to make sure that we continue that pace of recovery, not go back to the policies of the past under the Bush administration that put us in the ditch in the first place,” Wasserman Schultz told Mike Allen at POLITICO’s ‘Playbook Breakfast.’
Downgrade + $1 TRILLION stimulus failure + 9% unemployment + 17% real unemployment + 1,000+ stock market plummet + Libya + Pakistan + Yemen + spending $4.5 TRILLION in 2.5 years + raising the debt ceiling to spend another $2.4 TRILLION by 2013 = EPIC FAILURE!